When purchasing a historic home in any market, it can sometimes be a bit more overwhelming and involved than purchasing a recent build. It goes without saying that historic homes have additional considerations - they may require updates to their utilities and infrastructure to make the house fully habitable, or to simply make them more comfortable to live in.
Still, purchasing a historic home can have great rewards for those buyers and investors who are interested in revitalizing a part of the community and rehabilitating a property back to its former greatness. They’re also enticing to buyers simply because they often offer features that aren’t easily found in newer homes and neighborhoods. It’s not a coincidence that on various home buying and improvements, it shows there are often buyers that are looking for houses in which they describe as “having charm,” and this charm is simply hard to come by in a newer home.
The Rise of Historic Redevelopment
In some areas of the country, for example, historic homes are hard - or virtually impossible - to come by due to age of the overall homes in the area. In California, for instance, finding a home that was built before the 1930s could prove to be quite challenging. On the East Coast, however - and particularly in North Carolina and down South in general - there are quite a few neighborhoods filled with historic charm that have seen recent boosts in redevelopment. In the last decade alone Raleigh has seen huge spikes in historic redevelopment in areas such as Blount Street, Boylan Heights, Capital Square, Moore Square, Oakwood, Mordecai, and Glenwood-Brooklyn. But, if you’re interested in breaking out of the Raleigh area and diversifying your portfolio in a geographic sense, the areas of North Hills, Stone Henge, and Six Forks are also benefiting from historic redevelopment.
Up and Coming Areas in Redevelopment
If you’re interested in areas that are a bit more “up and coming” in terms of redevelopment, there are quite a few to choose from. Downtown Cary has become an extremely highly sought after historic district for developers and flippers, although high demand and low inventory means that prospective buyers need to be willing to move fairly quickly with their offers. Similarly, Hope Valley - which was Durham’s first “country club suburb” is filled with 1920s and 1930s architecture featuring a wide array of styles, while Morehead Hill has a plethora of Queen Anne and bungalow style homes surrounded by commercial redevelopment, making it a great community for developers to invest. And, last but not least, if you’re in search of a community with a bit more of an eclectic mix of styles - both modern and historic - Old North Durham could be the perfect area for your next investment project.
If you’re considering purchasing a historic home for your next fix and flip project, let Walnut Street Finance help you through the process. Download our guide Building Your Real Estate Empire: Borrower Basics 101, and get started today.